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Cryptocurrencies Surge, Bitcoin Breaks $85,000, Nearly 140,000 Liquidated
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On September 21, cryptocurrency prices rallied sharply, with Bitcoin briefly reaching $85,000 per coin, its highest since late January, before settling near $84,915, up 5.42% in 24 hours. Ethereum surpassed $2,700, while SOL, XRP, and Dogecoin each gained over 6%. According to Coinglass data, the rally triggered $750 million in liquidations over 24 hours, affecting approximately 136,000 traders, with short positions accounting for $650 million of the total. The move followed the U.S. Securities and Exchange Commission's (SEC) September 17 release of an 'Innovation Exemption' rule, allowing qualified trading platforms to offer tokenized stock trading under a five-year regulatory exemption. Morgan Stanley suggested Bitcoin could gain more support than gold if investors unwind defensive positions in Bitcoin ETFs, noting gold ETFs have fully recovered early-2026 outflows while Bitcoin ETFs have only recouped about half. CoinMarketCap research director Alice Liu attributed the market's resilience to prior digestion of interest rate hikes, but cautioned that rising financing costs could affect positioning. The article notes the SEC exemption remains temporary and conditional, and that the rally reflects a repricing of incremental regulatory improvement rather than a complete U.S. crypto regulatory framework.
Source report
Source: China Fund News Reporter: Li Zhi
Market Overview
On the afternoon of September 21, cryptocurrency markets experienced a broad rally, with Bitcoin surging sharply to briefly top $85,000 per coin. As of press time, Bitcoin was trading at $84,915.1, up 5.42% over the past 24 hours, reaching its highest level since late January.
Other major cryptocurrencies also posted strong gains:
- Ethereum climbed above $2,700
- SOL, XRP, and Dogecoin each rose by more than 6%
Liquidation Data
According to Coinglass data, the cryptocurrency market saw 136,000 traders liquidated over the past 24 hours, with total liquidation volume reaching $750 million. Of this:
- Long position liquidations: $100 million
- Short position liquidations: $650 million
Key Drivers
SEC's "Innovation Exemption" Rule
On September 17, the U.S. Securities and Exchange Commission (SEC) introduced a rule titled "Innovation Exemption," allowing trading platforms that meet specific conditions to offer tokenized stock trading in the United States. The rule grants eligible platforms a five-year period of regulatory exemptions. The SEC stated that the move aims to allow market participants to explore on-chain stock trading in a controlled environment while accumulating experience for the development of long-term regulatory frameworks.
Morgan Stanley's Outlook
Morgan Stanley noted that Bitcoin could receive more support than gold if investors begin to unwind defensive positions built around Bitcoin exchange-traded funds (ETFs). The bank pointed out that gold ETFs have fully recovered all outflows from early 2026, while Bitcoin ETFs have only recovered about half of their outflows. Futures market positions remain elevated across both asset classes, indicating that institutional investors continue to increase their exposure.
Analyst Commentary
Alice Liu, Head of Research at CoinMarketCap, stated that despite recent interest rate hikes by both the Federal Reserve and the Bank of Japan, the total market capitalization of cryptocurrencies has continued to grow. This suggests that the market may have already partially priced in these policy changes. She emphasized that the more critical factor to watch now is how rising financing costs will affect market positioning.
Cautionary Note
The SEC's "Innovation Exemption" remains a temporary and conditional regulatory arrangement. Comprehensive cryptocurrency market structure legislation has yet to be completed. The current rally more accurately reflects the market's repricing of incremental improvements in the regulatory environment, rather than signaling a full and final resolution of the U.S. cryptocurrency regulatory framework.
Source
新浪财经Eastern
Part of this Story
SEC Innovation Exemption Spurs Crypto Rally, Bitcoin Hits $85,000, Liquidating 136,000 Traders